Comments on: Quote Of The Dayhttp://www.thelibertypapers.org/2009/10/02/quote-of-the-day-105/
Life. Liberty. Property. Defending individual freedom and liberty, one post at a time.Wed, 16 Nov 2016 06:48:48 +0000hourly1https://wordpress.org/?v=4.6.1By: oilnwaterhttp://www.thelibertypapers.org/2009/10/02/quote-of-the-day-105/#comment-69602
Fri, 02 Oct 2009 23:03:58 +0000http://www.thelibertypapers.org/?p=6899#comment-69602oh, you may just wanna Google ‘Huffington Post interviews TARP auditor’ and find the video, it’s going to open your eyes about exactly what kind of absolute black hole the bank bailouts were. the ‘populist’ rhetoric that opposed it were 100% correct, and it comes straight from the auditor’s own lips.

Americans were right last year, and the govt ignored it.

]]>By: oilnwaterhttp://www.thelibertypapers.org/2009/10/02/quote-of-the-day-105/#comment-69601
Fri, 02 Oct 2009 23:01:18 +0000http://www.thelibertypapers.org/?p=6899#comment-69601the bank rescue packages of last year cannot properly be defined as “stimulus,” and especially in light of the fact that the money given to the banks are actually still sitting on their computer screens and not being released into the real economy. not to businesses, and not to individuals. they are still sitting on the bank screens in preparations for future losses. the auditor of the TARP program said so himself, on video in an interview with the Huffington Post.

so the “stimulus” $ cannot in any way be considered a stimulus for the real economy. that really is the bottom line. when some people talk about “throwing this money into a black hole” they are much more correct than they could ever imagine.

so of course defense spending can beat this. renting an inflatable spacewalk for Congressional pages to play in would beat this.
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GDP = C + I + G + Nx

to give an example of a real stimulus package, take the Federal Reserve under Greenspan initiating the incentive for banks to lend to housing. that was actual investment, for better or worse. of course, it turned out to be for the “worse.” but at least that was actual stimulus in terms of GDP (the Investment variable).

So what about tax reductions? i’m always, at any and every time, for them. are they going to save or even dent GDP decline in this environment? no, they won’t. (C)onsumption is dead, and it will take more than tax cuts to make the consumer come back from the dead. if the banks aren’t lending, nothing else matters for now.